Biosimilars are relatively new to the marketplace and are highly identical to approved biologic drugs. They possess similar medical properties in terms of potency, safety, and efficacy to original biologic products.
Many cutting-edge biologic medications available today bring new hope to patients suffering from a variety of medical conditions including some types of cancers, multiple sclerosis as well as inflammatory diseases like rheumatoid arthritis, Crohn’s disease and psoriasis. However, biologic medications come at a significant cost resulting from complex and costly development and minimal competition. Treating one patient with biologic therapy can cost in excess of hundreds of thousands of dollars per year.
European countries including Germany, U.K., and France have the most favorable market conditions for biosimilars. Demand for biosimilars is high in European countries as compared to other regions owing to the availability of a well-developed regulatory framework coupled with the presence of a large number of biopharmaceutical companies. These companies focus on price competition and innovative product development to command market dominance.¹
In Europe, biologics represent 34% of medicine spending at list prices and reached €78.6 billion in 2021. The total European biosimilar market reached €8.8 billion in 2021, representing 3% of the total European pharmaceutical value.² Adoption will require large educational efforts reaching prescribers, pharmacists and patients to assist in capitalizing on the cost savings potential of increased biosimilar utilization.
The UK biosimilars market is forecast to grow at a compound annual growth rate (CAGR) of 31.16 percent from 2020 to 2028, with monoclonal antibodies being the highest contributor reaching $2,462.6 million by 2028. Oncological biosimilars are expected to be the highest contributor reaching $2,232.1 million.³
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Europe Biosimilars Markets Databank: Markets Databank by MAGNA, February 2021